On October 23rd, 2014, we updated our
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CHANNEL INTEGRATION SYSTEM VERTICAL MARKETING SYSTEM HORIZONTAL MARKETING SYSTEM INTERGRATED MULTICHANNEL MARKETING
VERTICAL MARKETING SYSTEM(VMS) Producer + wholesaler + retailer acting as unified system One channel own other or franchise them There are a three type of VMS Corporate VMS – It combine stage of production + distribution under one ownership .
CONT……….. Administered VMS – Coordinate successive stage of production & distribution through size & power of one member. EX- Kodak & Gillette are able to cooperate fron there reseller . Contractual VMS – consist of independent firm at different level like- Whole seller , Retailer , franchise ..
HORIZONTAL MARKETING SYSTEM There two or more unrelated company put together to exploit market opportunity . EX- Coca cola & HUL tie up for bottling & distribution of Lipton .
INTERGRATED MULTICHANNEL MARKETING One single firm uses two or more marketing channel to reach one customer . Company get three thing adding channel Increase market coverage Lower channel cost More customized selling EX- Adding Technical sales to sell more
CHANNEL CONFLICT It occurs when one channel member action prevent another channel from achieving its goal EX- Oracle corp. TYPES OF CONFLICT Vertical conflict – conflict between different level within channel EX- HUL come with conflict with distributor of Kerala ….
CONT……….. Horizontal conflict – Conflict Between member at same level within channel EX- dealer frequently get into conflict with each other for domain Multichannel conflict – when manufacturer has stabilized two or more channel and sell to same market . EX- Escort tractor company through dealer and web marketing ..
CAUSES OF CHANNEL CONFLICT Goal Incompatibility Unclear role and right Difference in perception Intermediaries dependent on manufacturer
MANAGING CHANNEL CONFLICT Adaptation of super ordinate goal – come to agreement on fundamental goal. Exchange of employee – Between dealer and executive . Joint membership in trade association – EX- good corporation between two company Co-optation – effort of one organization to win support of another organization by including them as a member .
CONT…….. Diplomacy , mediation & arbitration Legal resource – Channel partner may choose to file a lawsuit.